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Question
Calculate the risk (standard deviation) of the following two-security portfolio if the correlation coefficient between the two securities is equal to 0.5.Variance Weight (in the portfolio)
Security A 10 0.3
Security B 20 0.7
a. 17.0 percent
b. 5.4 percent
c. 2.0 percent
d. 3.7 percent
Answer
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